In terms of the approaches to exchange rate forecasting, which of the following draw(s) on economic theory to construct sophisticated econometric models for predicting exchange rate movements?

Question

Quizplus · Accepted Answer

There are two schools of thought regarding the basis on which exchange rate forecasts should be prepared. One adheres to fundamental analysis, while the other uses technical analysis. Fundamental analysis draws on economic theory to construct sophisticated econometric models for predicting exchange rate movements.

In Terms of the Approaches to Exchange Rate Forecasting, Which